Gambling taxes on your winnings are not exempt. In the event you is seemingly to be a U.S. citizen you owe Uncle Sam a fraction, regardless if won here or in a international nation. The IRS considers all playing winnings taxable income, even though it be an amount that does not procure reported to the IRS by the payer, treasure that $20 snatch on a scratch off mark, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your favourite slot machine. Sadly, playing taxes are due.